Bitcoin kept the small block size so people could run their own nodes at home. But this isn't happening. People are using custodial solutions. Even I use Wallet of Satoshi and Minibits.

Small blocks opened the door to solutions like Cashu. Imagine a government with a centralized mint. El Salvador (Bitcoin country!) has a custodial Lightning wallet. This is just terrible.

Small blocks are the censorship factor here.

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I run core for node and cold wallet so I wouldn't say that's true across the board but I smell what you're stepping in. The fact is the majority of people aren't tech savvy. Hell I still don't know exactly how to connect my node to my wallet UI. Lacking education and ambition seem like bigger hurtles than the block size to me.